Final answer:
The statement is true because advertising costs are selling expenses, not manufacturing overhead. Manufacturing overhead includes costs directly tied to production, while advertising is a period cost and is reported on the income statement when incurred.
Step-by-step explanation:
The statement "Advertising costs should NOT be charged to the Manufacturing Overhead account" is true. Advertising costs are considered selling expenses, which are part of the non-manufacturing costs.
Manufacturing overhead is designed to accumulate all of the costs associated with the production process which include indirect materials, indirect labor, and other indirect costs, such as factory utilities and rent.
Therefore, charging advertising costs to Manufacturing Overhead would not provide accurate financial information and would violate accounting principles. Instead, advertising costs should be reported as operating expenses on the income statement within the period they are incurred.